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The U.S. Treasury Department proposed rules Friday that would clarify which financial institutions must require their U.S. clients to report their offshore holdings to tax authorities. The proposals, issued by the department's Financial Crimes Enforcement Network (FinCEN), would exempt private equity firms and offshore hedge funds from filing Foreign Bank and Financial Account (FBAR) reports. The bureau also said it was considering reducing the number of FBARs filed by companies because some filings were redundant. Despite the exemption of hedge and private equity funds, "Treasury remains concerned about the use of … hedge funds to evade taxes and FinCEN will...